Determinants of capital structure for Philippine publicly-listed companies

• Main Author: Bendo, Mark Vincent V.
• Format: text
• Published: Animo Repository 2018
• Subjects: Corporations—Philippines—Finance; Capital; Accounting; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/9266
• Institution: De La Salle University

All entities have limited resources and management is expected to exercise prudence in its allocation to activities which would impact the overall standing of their respective organizations. However, proper allocation of resources is just one side of the coin and it can’t be done if businesses do not even have any resource to allocate at all.The sources of an entity’s funds, both borrowed capital from creditors as well as the invested capital from and earned capital of shareholders, must also be considered in the decision-making process of the management.The dataset used contained financial data of 179 Philippine publicly-listed firms (excluding banks and other financial institutions) for the periods 2012 to 2016. Panel data regression was used to arrive at the outcomes of this study.This study determined that in the Philippines, size and growth are considered determinants of capital structure. Both variables have positive effects on the capital structure of firms.